Dynamic-robust problem solving - thinking tools for outperformance.

1. Make it real! Dynamic-robust problem solving - thinking tools for outperformance. A guest contribution white paper for the BetaCodex NetworkCourtesy of Dr. Gerhard Wohlandgerhard.wohland@benmark.net

2. Dr. Gerhard Wohland, gerhard.wohland@benmark.net • PhD in physics • 1946, Germany • Director of the Institute for Dynamic-Robust Outperformance (IdH), Germany • Some clients: • Deutsche Telekom AG • DaimlerChrysler AG, Stuttgart • VW AG, Wolfsburg • Schwan-STABILO, Nürnberg • Gerling, Köln • debis Systemhaus, Stuttgart • Bosch, Stuttgart

3. Outperformers Market pressure Conventionalcompanies 1900 2008 The historical course of market dynamics high dynamics sluggishness high dynamics Global markets Tayloristic industry Crafts manufacturing dynamic man machine formal t 1980 The domination of high dynamic is neither good or bad. It‘s a historical fact.

4. How to distinguish between “red” and “blue”. principle surprise alive flow structure repetition dead rule

5. Duality – the distinction between “red“ and “blue“ Blue The Integration behindthe Distinction Red complicate formal dead ”World“ complex dynamic alive Administration Management Leadership Knowledge Competence Ability (skill) to learn Qualification to practice Behavior Culture Values Data Communication Information ..... .... .... Distinctions are needed, if you want to think and describe dynamic relations.

6. Centre Centre and periphery under dynamic pressure Dull market Dynamic market Peri-phery Peri-phery Shareholder Shareholder Peri-phery Peri-phery Centre Stimulus Peri-phery Stimulus Market Peri-phery Peri-phery Market Response Response In dynamic markets, the centre loses its knowledge superiority, and steering collapses.

7. Things to remember about innovation: • Innovation applies to: • “Products” (meaning: new value creation) • Organisation (we’ll see more about that) • Thinking (e.g.: “red” and “blue”) • Innovation is: • “The last link in a long chain of defeats.” • ”Red”. Therefore, the question isn’t How? to do it, but Who? can do it. • A task that can not be delegated by the centre. • Depending on having a “Resistant Nest” for talent.

8. Problem-solving in low and high-dynamic markets Low dynamic (steering and control) High dynamic (leadership) Peri-phery Peri-phery Peri-phery Peri-phery Shareholder Shareholder Knowledge Competence Competence Problem Centre Problem Centre Problem Solution Divides problems Finds solutions Order to periphery Peri-phery Peri-phery Market Market Peri-phery Peri-phery The centre divides the problems, passes them to the periphery and re-combines their results into a solution The centre solves problems and gives out orders – the periphery executes upon them.

9. “Thinking tools” for outperformers (examples) • Symmetrization • Dual Process Development • Culture Observation • Strategy versus Plan • Economic Outsourcing

10. Symmetric coupling of centre and periphery Asymmetrical Symmetrical Central service Central service Centre Innovation Innovation Leadership Day-to-day business service Control service service value creation “right to demand” Day-to-day business value creation Self-control Periphery customer customer The reintegration of day-to-day business responsibilty into the peripheryturns the interface symmetric, and innovation becomes possible.

11. The duality of processes Low dynamics High dynamics Problem-solving technology: People with ideas principle surprise alive flow structure repetition dead rule 1 2 3 4 5 Problem-solving technology: ”Process“-description Low-dyamic problem High-dynamic problem High-dynamic problems call for an increase in the red part of the solving process.

12. The similarity in the complex portion of all problems complicated Project Management Management Leadership/Administration Administration/Leadership Qualifi-cation IT Mastery / Knowledge Coupled / Neutral complex Value creating / Parasitic Reduction / Optimization Sales Betterment/Administration Costs Tayloristic / Federative Knowledge Management Organization

13. The duality of culture Behaviour-based culture(tayloristic-dull/slow) Value-based culture(post-tayloristic/dynamic) Values (thinking) Behaviour (doing) Consistingof: What‘s behindand cannot be changed by decision. What you can seeand change by decision. Governed through: Control (trivial) Leadership (complex) Intrinsic motivation to thinking Extrinsic motivation to behavior Only the blue part of culture can be changed. The red part of it can only be observed!

14. “Strategy”, or “planning”? Out of bounds! 5 Out of bounds! Future Status(Target) 4 2 1 6 CurrentStatus “Strategic space“ 3 If you know the way, then you can make a plan. If you don‘t know the way, then you need strategy. In conformity with strategy

15. Outsourcing: Harmony and conflict between“core“ competence and “shell“ competence supplier market(external reference) missing existing Buy shell(outsourcing) Buy core(“Santa Clause“interface) 1 3 we buy it! Business intention(internalreference) Make shell(waste/muda) Make core 2 4 we make it ourselves! The outsourcing decision is determined exclusively by the supplier market, not internally. Innovation is limited to core competence.

16. Dr. Gerhard Wohland, gerhard.wohland@benmark.net

17. Make it real! www.betacodex.org Get in touch with us for more information about leading transformation with the BetaCodex and the Double Helix Framework, or ask us for a workshop proposal. Niels Pflaeging niels@bbtn.org nielspflaeging.com Sao Paulo, Brazil Gebhard Borck gebhard@bbtn.org gberatung.de Pforzheim, Germany Valérya Carvalho valeria@bbtn.org Betaleadership.com Sao Paulo, Brazil Markus Schellhammermarkus.schellhammer@my-online.deZurich, Switzerland Silke Hermannsilke.hermann@insights-group.deWiesbaden, Germany Andreas Zeuch az@a-zeuch.de a-zeuch.de Winden, Germany